Correlation Between MCEWEN MINING and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Pembina Pipeline at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MCEWEN MINING and Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCEWEN MINING INC and Pembina Pipeline Corp, you can compare the effects of market volatilities on MCEWEN MINING and Pembina Pipeline and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MCEWEN MINING with a short position of Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Pembina Pipeline.
Diversification Opportunities for MCEWEN MINING and Pembina Pipeline
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and Pembina is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp and MCEWEN MINING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MCEWEN MINING INC are associated (or correlated) with Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Pembina Pipeline go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Pembina Pipeline
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.72 times less return on investment than Pembina Pipeline. In addition to that, MCEWEN MINING is 2.94 times more volatile than Pembina Pipeline Corp. It trades about 0.01 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.04 per unit of volatility. If you would invest 3,397 in Pembina Pipeline Corp on October 25, 2024 and sell it today you would earn a total of 174.00 from holding Pembina Pipeline Corp or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Pembina Pipeline Corp
Performance |
| Timeline |
| MCEWEN MINING INC |
| Pembina Pipeline Corp |
MCEWEN MINING and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Pembina Pipeline
The main advantage of trading using opposite MCEWEN MINING and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Pembina Pipeline can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| MCEWEN MINING vs. Sunny Optical Technology | MCEWEN MINING vs. VELA TECHNOLPLC LS 0001 | MCEWEN MINING vs. Uber Technologies | MCEWEN MINING vs. Agilent Technologies |
| Pembina Pipeline vs. TC Energy | Pembina Pipeline vs. Cheniere Energy | Pembina Pipeline vs. Kinder Morgan | Pembina Pipeline vs. The Williams Companies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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